Machinists, maintenance technicians, engineers, production workers. For manufacturers across Idaho and Utah, the hardest positions to fill are usually the ones the floor cannot run without, and competition for experienced candidates is not easing.

A workforce strategy worth the name treats recruiting, retention and development as one problem rather than three. Pairing competitive pay with flexibility and training builds a pipeline that holds up better than any single lever.

Look beyond base pay

Wages matter, but they are the part every competitor can match. Signing bonuses, retention bonuses and performance-based incentives can move a candidate weighing two similar offers, or hold someone who is being recruited away.

Traditional benefits still carry weight. Health insurance and a 401(k) match are what most candidates check first, and those costs are more negotiable than employers assume. Go back to your existing providers with competitor quotes in hand.

Voluntary benefits are worth a look as well. Consumer goods purchasing programs, life insurance and disability coverage are usually paid by the employee, often through payroll deduction, and an employer can frequently secure terms an individual could not get alone.

Review your employee value proposition

Pay is one part of why someone joins and stays. The rest is your employee value proposition: the financial and nonfinancial reasons people choose your floor over another.

The fastest way to find out what yours is worth is to ask. Workers often rank a respectful workplace, a supervisor who backs them, recognition for good work, the chance to learn something new and a visible path forward above small differences in pay. Where two employers offer the same wage, culture is the tiebreaker.

Scheduling belongs in the same conversation. Remote work is not realistic for most production roles, but flexible start and end times, compressed weeks and alternative shifts are. Seasonal and part-time arrangements can cover needs a full-time posting never fills.

Develop the talent you already have

When experienced candidates are scarce, the people already on your payroll become the pipeline.

Cross-training widens what each person can do and gives you room to move when someone is out, demand shifts or a key role opens up. It also signals that you will invest in people, which is its own retention argument. Workers who can see the next skill in front of them are less likely to take a recruiter’s call.

Apprenticeships go further. Instead of competing for finished candidates, you recruit for aptitude and build the skills yourself, pairing structured on-the-job instruction with technical education. Over time you get people whose training matches how your plant actually runs.

Make advancement visible

You do not need layers of management to give people somewhere to go. Mastering another machine, earning a certification, leading a team, training coworkers or moving into more technical work are all real advancement.

What matters is that the path is stated rather than assumed. If an employee can describe how to increase their skills, responsibility and pay where they are, that is one more reason to stay.

Match the strategy to your workforce

No single compensation or recruiting approach solves a labor shortage on its own. What people value varies by age, role, location and circumstance. The manufacturers who do best combine pay with flexibility, training, a visible career path and a culture people mention to their friends, then keep adjusting as their workforce changes.

Cooper Norman works with manufacturers and retailers across Idaho and Utah on the decisions behind those tradeoffs, including what a compensation change does to your numbers before you commit to it. Bring us the decision and we will bring the figures.

As manufacturers expand into new markets, state and local tax obligations can become more complicated than many businesses expect. Activities that once seemed routine, such as selling into a new state, storing inventory, sending employees across state lines, or providing post-sale support, may now create a taxable connection known as nexus. That can trigger new requirements for sales and use tax, income tax, payroll tax, registration, and reporting.

Recent changes in how states evaluate economic activity have made it increasingly important for manufacturers to understand where they may be creating tax exposure before problems surface. Growth into new markets can create opportunity, but it can also create compliance obligations that need to be anticipated and managed carefully.

Read the full article below to learn what activities may trigger multistate tax obligations, how nexus rules are evolving, and what manufacturers can do to stay ahead of potential compliance risks.

Multistate tax liability: What’s your manufacturing business’s exposure?

As your manufacturing business expands into new markets, its state and local tax obligations become increasingly complex, spinning a web of different rules and obligations. Common business activities may produce a taxable connection, or “nexus,” that exposes your organization to sales and use tax, state income tax, and other state tax obligations. Here’s what you need to know to stay on the right side of the state tax authorities.

The long arm of state tax laws

Not so long ago, manufacturers didn’t have to worry about tax liability in states where they lacked a physical presence, such as a plant or corporate offices. That changed in 2018, when the U.S. Supreme Court ruled in Wayfair, Inc. v. South Dakota that states can impose sales and use taxes on a business based solely on its “economic activity” within the state, regardless of whether the organization has offices or permanent employees there. As a result, many states began imposing such taxes on out-of-state businesses that exceed certain annual thresholds in revenue or number of transactions within their boundaries. (States are increasingly dropping the transactions threshold, focusing instead on revenue.)

The Wayfair ruling doesn’t apply to income taxes. A federal law known as Public Law (P.L.) 86-272 has long protected certain out-of-state businesses from state net income taxes when their only in-state activities are the solicitation of orders for sales of tangible personal property, as long as the orders are sent out of state for approval and, if accepted, are fulfilled from outside the state.

But that protection has eroded in recent years. In 2021, the Multistate Tax Commission (MTC), in recognition of the dramatic increase in online business activities, issued a statement identifying certain activities as protected or unprotected under P.L. 86-272. The list of unprotected activities includes many potentially relevant to manufacturers, including:

• Repair or maintenance activities on sold property,
• Providing technical or service assistance,
• Owning, leasing, using or maintaining a warehouse or inventory,
• Installation,
• Training,
• Carrying samples for sale or distribution,
• Collections and credit check activities, and
• Having a remote employee in a state who performs work other than soliciting orders for tangible personal property (that employee could trigger state payroll tax obligations, too).

The MTC guidance also addresses certain activities conducted online. According to the MTC, for example, providing post-sale assistance to customers in a state through electronic chat or email, with the communication initiated by the customer clicking on an icon on your website, could subject you to income taxes in that state. Even using internet cookies could put you outside the protection of P.L. 86-272 under the MTC’s model.

If your manufacturing business has nexus with a state for purposes of sales and use tax, income tax, or other types of taxes, you could be subject to tax obligations such as registering with the state tax authority and reporting, collecting and remitting taxes. Keeping up with those obligations is no small task.

Note: Currently, California, New York, New Jersey and Massachusetts have adopted the MTC’s guidance to some degree; adoption across other states varies.

Compliance steps

Adoption of the MTC guidance isn’t the only matter where states have taken different stances toward the taxation of out-of-state businesses. If you think your manufacturing business may have nexus with a state, you need to know its rules and requirements regarding, among other things, the nexus standards, sourcing of sales, apportioning of income and the availability of exemptions.

You also must implement the necessary controls to ensure you don’t overlook “economic activities” that could subject you to taxation. For instance, how will your tax team know if an employee crosses state lines to perform an installation, make a service call or train a customer on how to use your product?

And you should take potential state tax liability into account when developing plans to grow your business. Increased revenue, inventory storage, leasing or deliveries into a state could mean tax obligations that you want to know about in advance so you can properly prepare.

Act now

States are increasingly using data and analytical tools to identify out-of-state businesses that may have filing or tax obligations within their jurisdiction. We can help you evaluate your business’s multistate tax exposure so you can uncover compliance gaps, avoid costly assessments and penalties, and take advantage of all applicable tax credits and other incentives. Contact us to learn more.

Effective cash flow management is crucial for the success of any retail business. Cash flow,the movement of money in and out of your business,can determine whether you thrive or struggle, especially in an industry as competitive as retail. Poor cash flow can lead to stock shortages, missed opportunities, and even business failure. To avoid these pitfalls, here are some best practices to improve your retail cash flow.

Accurate Forecasting and Planning

One of the most effective ways to manage cash flow is through accurate forecasting and planning. By anticipating sales trends, seasonal fluctuations, and upcoming expenses, you can prepare for cash flow needs well in advance.

• How to Implement: Use historical data and market research to project future sales and expenses. Consider factors like holidays, weather patterns, and economic conditions that might influence your business. Regularly update your forecasts to reflect changes in the market.

Inventory Management

Inventory is often the largest investment for retail businesses. Excess inventory ties up cash that could be used elsewhere, while insufficient inventory can lead to missed sales opportunities.

• How to Implement: Implement inventory management systems that help track stock levels and sales trends. Use Just-In-Time (JIT) inventory techniques to reduce holding costs. Regularly review your inventory and adjust your orders based on what’s selling and what’s not.

Negotiate with Suppliers

Your relationship with suppliers can have a significant impact on your retail cash flow. By negotiating better payment terms, you can improve your cash flow without affecting your relationships.

• How to Implement: Negotiate longer payment terms with your suppliers, such as net 60 or net 90, to keep cash in your business longer. Alternatively, see if you can negotiate discounts for early payments, which can reduce costs in the long run.

Improve Receivables Collection

Delayed payments from customers can disrupt your cash flow. Implementing strategies to speed up receivables collection can ensure you have the cash you need when you need it.

• How to Implement: Offer incentives for early payments, such as small discounts. Implement clear and consistent invoicing practices, and follow up on late payments promptly. Consider using electronic invoicing and payment systems to streamline the process.

Control Operating Expenses

Keeping a tight grip on your operating expenses is essential for maintaining positive cash flow. Regularly reviewing and optimizing your expenses can free up cash for other needs.

• How to Implement: Regularly audit your expenses to identify areas where you can cut costs. Look for cheaper alternatives for utilities, supplies, and services. Automate processes where possible to reduce labor costs, and avoid unnecessary expenses that do not directly contribute to revenue.

Enhance Sales and Marketing Strategies

Increasing sales is an obvious way to improve cash flow. By enhancing your sales and marketing strategies, you can drive more revenue into your business.

• How to Implement: Focus on marketing campaigns that target your most profitable customers. Use promotions and discounts strategically to boost sales during slower periods. Additionally, consider cross-selling and upselling techniques to increase the average transaction value.

Diversify Revenue Streams

Relying on a single source of revenue can be risky. Diversifying your income streams can provide a buffer against cash flow fluctuations.

• How to Implement: Introduce new products or services that complement your existing offerings. Explore online sales channels if you haven’t already, or consider offering subscription services for recurring revenue. Expanding your market reach through partnerships or new locations can also help.

Utilize Financing Options

Sometimes, you may need an external cash flow boost, especially during periods of growth or unexpected downturns. Accessing financing options can help bridge cash flow gaps.

• How to Implement: Explore options such as lines of credit, business loans, or merchant cash advances. Use these funds strategically for investments that will generate future cash flow, such as inventory purchases or marketing campaigns.

Conclusion

Improving cash flow in a retail business requires a proactive approach and attention to detail. By implementing these best practices,accurate forecasting, efficient inventory management, effective receivables collection, and strategic expense control,you can maintain a healthy cash flow that supports your business’s growth and stability. With careful planning and execution, you can ensure that your retail business remains financially resilient and poised for success in the long term. Contact Cooper Norman is here to help with all of your retail cash flow.